2015 Housing Market - Is it a Good time to Buy a Home?
I can see it already, the number of visitors to our site increasing, inquires and questions coming in, property searches being saved and the Ohio real estate market is already coming out of hibernation. I've already been asked a half dozen times by future buyers if it's a good time to buy.
First time buyers have a lot of questions.
Chief Economist of the National Association of Realtors thinks so, and so do I. Particularly if you look down the road. Homes sales to jump 5% and new home sales are expected to increase 30-40%, and house values to climb 5-7%.
While sales are predicted as hot for new home sales, it can be construed as "pent up demand", as Mr. Yun put it, and the increase in house values and sales prices, though modest, are welcome. But what does all that mean for the 2015 first time buyer? Particularly the millennial demographic?
It means, get up and bust a move, make it happen. In some ways, the real estate, or housing market is similar to Wall Street and has to balance itself out or undergo major corrections. We all saw the dismal crash of 2010, so when I see articles like this from respected authorities, I'm cautiously optimistic. It's seems to be a time of "Get it while it's good".
- House values expected to rise 5%
- Home sales expected to rise 5 %
- New home sales expected to rise 30-40%.
First Time Buyers - More Competition
Mortgage rates could hit 5% by the end of this year, still very low, but if your household finances are sensitive it could really hurt. A lot of buyers I believe already aware of this are getting serious about a home purchase.
Now add FHA cutting premium mortgage insurance virtually in half brings the monthly cost of owning a home down, giving further encouragement to first time buyers.
Rise in house values may put buying a home out of reach for some first time buyers if they wait too long. Coupled with a rise in rates by the end of 2015, add another 5% to purchase price and on a $200,000 home a buyer is financing another $10,000.
That may not sound like much but depending on a buyer's price range that could add another $50 -$150 to a monthly payment even after PMI is reduced.
Lower gas prices, better economy, less unemployment and more consumer confidence means there will be more buyers with down payments handy.
Personal proof you're gong to have more competition? My business partner Marty Snyder has been out showing homes all this week in the snow (he's great at helping first time buyers) and tells me every single client he's actively helping currently is in their mid-twenties. So, if you've been sitting on the fence, now's a good time to hop off and bust a move.
If you're looking for a home in SW Ohio from Dayton to Cincinnati, give Marty a shout or visit our website below.